Alaska Airlines has successfully navigated the regulatory hurdles in its plan to acquire Hawaiian Airlines. The U.S. Justice Department has completed its investigation of the deal without any lawsuits to block it. This milestone comes eight months after the $1.9 billion agreement to combine the two carriers was announced. Now, the next step is securing approval from the U.S. Transportation Department before the deal can be finalized. The timeline for this process remains unclear at the moment.
If the acquisition goes through, it will mark the largest merger of U.S. carriers since Alaska’s merger with Virgin America eight years ago. Alaska Airlines emphasized the importance of this development, stating that it is a significant milestone in the process of bringing the two airlines together. This move comes on the heels of the DOJ’s successful blockage of JetBlue Airways’ acquisition of Spirit Airlines in January.
Leading up to the deal, Hawaiian Airlines encountered various challenges. These challenges included the Maui wildfires, increased competition from Southwest Airlines, and the slower recovery of travel to and from Asia due to the Covid-19 pandemic. Despite facing net losses in most quarters since 2020, Hawaiian Airlines executives have noted an improvement in booking trends. This positive outlook is reflected in the nearly 12% increase in Hawaiian’s shares this quarter, contrasting with the decline in most other airlines’ shares.
When the deal was announced in December, both airlines committed to maintaining each carrier’s brand identity while operating under a unified platform. This merger will create a fleet of more than 360 airplanes serving over 130 destinations. The integration of operations and resources will likely result in a stronger combined entity that can better compete in the ever-evolving airline industry.
The successful acquisition of Hawaiian Airlines by Alaska Airlines represents a significant move in the airline industry. By overcoming regulatory challenges and addressing operational issues, both carriers are poised to create a more robust and competitive partnership that will benefit passengers and stakeholders alike. It will be interesting to see how this merger unfolds and what impact it will have on the aviation landscape in the coming years.